Overview

• US cybersecurity and electronic warfare firm's Q1 revenue grew 23% yr/yr, driven by new contracts

• Adjusted EBITDA for Q1 improved to $0.4 mln from $0.08 mln a year ago

• Company ended Q1 debt-free, with $15.8 mln in cash and record backlog of $273.3 mln

Outlook

• Company expects to recognize about 16% of backlog over next 12 months

• Castellum expects to recognize about 49% of backlog over next 24 months

Result Drivers

• NEW CONTRACT RAMP-UP - Co said Q1 revenue growth was driven by production ramp-up of new long-term contract wins, especially with the U.S. Navy and federal customers

• CONTRACT MIX IMPACT - Gross margin was affected by changes in contract mix and type

Company press release: ID:nGNX7Ffnjx

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$14.30 mln	$13.13 mln (1 Analyst)
Q1 Gross Profit		$5.10 mln

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Castellum Inc is $3.50, about 433% above its May 7 closing price of $0.66

• The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 31 three months ago

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